Executive Space

Shrinkflation is a term that has gained significant relevance in recent times. It refers to the practice of reducing the size or quantity of a product without changing its price, a strategy companies use to cope with rising costs without consumers easily noticing. However, with a bit of creative license, this concept isn’t limited to consumer products; it can also be applied, with serious consequences, to organizational structures.

When a company reduces its investment in executive talent, expecting the same results with fewer resources, it faces a corporate version of shrinkflation. This approach involves diminishing the strategic and operational capabilities of its leaders without an immediate visible adjustment, but with long-term effects that are strongly felt.